UK stocks bounced strongly on Tuesday morning as sentiment recovered after tensions between Ukraine and Russia dragged markets to a two-week low.

"With no new headlines breaking on the geopolitical situation, it looks like investors are taking this opportunity to claw back the sleep losses of yesterday's session," said Financial Sales Trader Sam Fox from Spreadex.

London's FTSE 100 benchmark index was trading 1% higher at 6,775.5 in morning trade. The Footsie fell 1.5% to 6,708.35 on Monday, finishing at its lowest closing price since February 14th.

Russian President Vladimir Putin this morning ordered forces "involved in military exercises" to return to their bases, following the backlash from international leaders after Russia's increased military presence near the border of Ukraine.

However, Russia continues to have around 16,000 troops still deployed in the Crimea region in the aftermath of deadly protests last month and the ousting of pro-Russian Ukrainian President Viktor Yanukovych, who has since fled to Russia.

The intervention had been condemned by the G7 who labelled it as a "violation of Ukraine's sovereignty", prompting calls for potential trade sanctions and visa restrictions against Russia in retaliation.

Ashtead, Glencore Xstrata provide a lift

Equipment rental business Ashtead surged after reporting a bumper set of third-quarter earnings, driven by a strong performance from its two main divisions. The group now expects full-year results to come in ahead of previous expectations.

Mining group and trading house Glencore Xstrata also rose after beating forecasts comfortably with its 2013 results. Adjusted operating profits were more or less flat at $13.1bn but well ahead of the $12.3bn expected by analysts.

Leading the downside was precious metal producer Fresnillo which slumped after it reported a 64% drop in 2013 profits, reflecting a decline in gold production and a fall in precious metal prices.

The stock, along with sector peer Randgold, was also pulling back after a strong performance on Monday as a reduction in risk appetite pushed investors towards safe-haven assets such as gold and silver.

Markets were largely shrugging off a statement from Randgold chief Mark Bristow who said the opportunities for gold mining in Africa more than outweigh the challenges currently facing the industry.

Oil major BP was subdued after a US court rejected calls to prevent certain compensation payments related the Deepwater Horizon oil spill. BP released a statement yesterday saying it disagrees with the decision.

Postal group Royal Mail was lower after Credit Suisse initiated coverage of the stock with an 'underperform' rating, saying that the valuation is "stretched" after recent share-price strength.

Stock News is provided by Digital Look Corporate Solutions from Sharecast news.
Please read the terms and conditions of useage of this data. Republication or redistribution of content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Digital Look Ltd.

Get a free widget for your website with our latest headlines.

You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.